Has anyone here dealt with filing in PA and NJ as a married couple? We're in the same boat and curious if joint or separate is better for these specific states.

Great question! As someone who's been through this exact situation, I'd strongly recommend running both scenarios in TurboTax before deciding. Generally, married filing jointly tends to be better for most couples because you get access to higher standard deductions ($29,200 for 2024), better tax brackets, and credits that aren't available when filing separately. However, your two-state situation does add complexity. Some states handle joint vs. separate filing differently, so what's better federally might not be optimal for your state returns. The good news is TurboTax will let you compare both options and show you the total refund difference (federal + both states combined) before you file. Given that you only worked 6 months last year, your lower income combined with your spouse's income might actually put you in a better position filing jointly this year. The key things to compare are: total tax owed, available credits (like Earned Income Credit if applicable), and any deduction limitations that kick in with separate filing. Definitely take advantage of TurboTax's comparison feature - it's designed exactly for situations like yours!

Does anyone know if the employee retention credit can still be claimed on Form 3800 for 2023? I'm getting conflicting information. Some places say it ended in 2021, others say there were extensions.

I've been dealing with Form 3800 for my small marketing agency and wanted to share a few things that helped me get through it successfully. The biggest breakthrough was realizing that Form 3800 is really just a summary form - you have to complete all the underlying credit forms first. For Sofia's situation with R&D expenses, definitely start with Form 6765 (Research Credit) before touching Form 3800. The key is documenting that your software development involved genuine technical uncertainty and experimentation. Keep detailed records of problems you encountered, different approaches you tried, and how you tested solutions. One tip that saved me hours: create a simple spreadsheet listing all potential business credits and check which ones apply to your business type and activities. Common ones for small businesses include the Small Employer Health Insurance Credit, Work Opportunity Credit, and Research Credit. Don't assume you don't qualify - I missed out on credits for two years because I thought my business was "too small." Also, if this is your first time claiming significant credits, consider getting a consultation with a tax professional just to review your work before filing. The documentation requirements can be tricky, and an audit on business credits is much more intensive than a regular tax audit.

This thread has been incredibly helpful! I'm in a very similar situation - my partner makes about $5,800 annually, so just over the dependent threshold. One thing I wanted to add that I learned from my benefits administrator: make sure you understand whether your employer calculates imputed income based on the full premium cost or just their contribution portion. My company only counts their subsidy as imputed income, not the total premium cost, which made a significant difference in my tax impact. Also, for anyone considering this, don't forget that some employers offer flexible spending accounts (FSA) that can help offset some of the additional tax burden. Even though the imputed income for your partner's coverage is taxable, you can still use pre-tax FSA dollars for their medical expenses. Has anyone here dealt with how this affects state taxes? I'm in California and trying to figure out if the state follows the same rules as federal for domestic partner coverage taxation.

I went through this exact situation two years ago and wanted to share a few additional considerations that might help. My partner makes around $6,200 annually, so like yours, just over the IRS dependent threshold. One thing that surprised me was how the timing of enrollment affected my taxes. I added my partner mid-year (July), so I only had imputed income for half the year. This actually helped me ease into understanding how it would impact my overall tax situation before committing to a full year. Also, make sure to ask your benefits administrator about the "look-back" period if your partner's income fluctuates. Some employers will reassess domestic partner eligibility annually based on the previous year's income, while others look at projected current year income. This could matter if your partner's income changes significantly from year to year. Another practical tip: if you're using direct deposit, the imputed income will show up in your regular paycheck deposits, so your take-home might be less than expected even though your gross pay appears higher on your paystub. I had to adjust my budget when I first noticed this. The good news is that even with the extra tax burden, it was still much cheaper than my partner getting individual coverage through the marketplace. Just make sure you factor in the full annual impact when making your decision!

I totally missed the Savers Credit last year when I filed with FreeTaxUSA. Would it be worth filing an amended return? I put about $1,800 into my Roth IRA last year and my income was around $32,000.

This is such an important reminder! I work in HR and see this all the time - employees contributing to their 401k through payroll deduction but completely unaware they could be getting additional tax credits for it. What's really frustrating is that many tax prep services don't always catch this either, especially the cheaper online options. I've started mentioning the Savers Credit during our annual benefits enrollment meetings because so many of our lower-income employees qualify but never claim it. One thing to add - if you're married and both spouses contribute to retirement accounts, you can potentially get the credit for both contributions (up to the annual limits). And remember, even small contributions count! You don't need to max out your retirement account to benefit from this credit.

If you're a solo owner, don't forget about health insurance! Your S-Corp can reimburse you for health insurance premiums, which creates a business deduction for the S-Corp and isn't subject to FICA taxes. Just make sure it's set up correctly - the S-Corp should reimburse you after you pay personally, and it needs to be documented properly with a formal plan.

One thing I haven't seen mentioned yet is business meals and entertainment - if you've been meeting with clients or potential customers throughout the year, make sure you're capturing those expenses. For 2024, business meals are still 50% deductible if they're directly related to your business. Also, don't overlook professional services you might have used - legal fees, consulting, marketing services, etc. Even subscriptions to industry publications or software you use for business can add up. With your $145k revenue, you might also want to look into whether you can shift some income to next year if you have any outstanding invoices you haven't sent yet, or consider prepaying some 2025 business expenses before you file. Just make sure everything is legitimate and properly documented! Time is tight but these smaller deductions can really add up when you're dealing with a six-figure S-Corp income.